Billion-dollar copper project to deliver local benefits

Dyno Nobel (ASX: DNL) has sold it Phosphate Hill site in north west Queensland to Mayfair Corporation for an initial purchase price of $1 and a deferred consideration of up to $100m.Dyno Nobel had previously said that if a sale was not completed by March 31, it would progress cease operations at Phosphate Hill by 30 September 2026.This announcement came after the company reported a $149.1m after-tax impairment on the asset last year.Located 140km south east of Mount Isa, Phosphate Hill’s acid plant is critical to operations at Glencore’s Mount Isa copper smelter and its closure would significantly affect smelter operations.Sulphur dioxide produced as a byproduct at Mount Isa is processed into sulphuric acid, which is then sent to Phosphate Hill for fertiliser production.Queensland Natural resources and Mines Minister Dale Last says recent geopolitical events have reinforced the importance of protecting Queensland’s sovereign fertiliser manufacturing capability.“These assets are too important to our agricultural sector, our supply chains and our economic security to take for granted,” he said.The symbiotic relationship between Phosphate Hill and the Mount Isa smelter supports more than 1000 jobs across the region, according to the Queensland Government.Dyno Nobel chief executive and managing director Mauro Neves says the sale is an important milestone that concludes the company’s separation from the fertiliser business.“I am very pleased that our talented teams in Phosphate Hill, Mount Isa and Townsville will continue to provide Australian farmers with a secure domestic source of fertilisers supply,” he said.Mayfair will assume ownership of the Phosphate Hill operations from April 1. The privately held Australian energy and resources company currently operates the Top Camp gold project in Cloncurry, about 150km north of the Phosphate Hill site.

Fortescue (ASX: FMG) expects to save US$100m in fossil fuel costs next year as it fast-tracks its delivery of a fully integrated green energy grid. Unlike other large renewable hubs, which feed intermittently into national or other power systems, Fortescue’s off-grid system is expected to be the largest of its kind dedicated to decarbonising major industry. Fortescue anticipates the 290MW of installed renewable capacity to meet the fixed energy requirements of its ore processing facilities, enabling daytime “green processing” across its Pilbara operations, by early 2027. The system is expected to ramp up to power all of Fortescue’s operations for 24-hour periods completely without fossil fuels by the end of 2027 — well ahead of the companies previous Real Zero by 2030 target. Fortescue is expecting full completion of its Pilbara green grid by the end of 2028, which includes 1.2GW of solar capacity, more than 600MW of wind generation and 4-5GWh of battery energy storage. Fortescue says the deployment of its accelerated green grid infrastructure timeline has commenced within its approved decarbonisation budget.  At the completion of its decarbonisation program, Fortescue expects to demonstrate that eliminating fossil fuels is not only achievable but economically superior by achieving a further reduction in C1 unit costs of at least US$2 - 4/wmt. Fortescue sees a clear pathway to expand its green energy system by a further approximately 2GW of power generation capacity, firmed with 4GWh of advanced batteries. This would be enabled by Fortescue’s proprietary know-how, patented technologies and exclusively developed AI, and is expected to be delivered for less than US$2.5b.  The company anticipates this capacity could be progressively delivered over an 18- month timeframe — an unprecedented delivery of firmed energy generation in speed to market, capital costs and operating costs. The company has also marked another major operation milestone with the shipment of its 2.5 billionth tonne of iron ore. 

Lynas Rare Earths (ASX: LYC) is expecting production shortfalls at its Kalgoorlie processing facility in WA due to major power supply disruptions.

Rio Tinto (ASX: RIO) has commissioned a new alumina conveyor at its BC Works smelter in Kitimat, Canada as part of a CA$135m investment to improve operational reliability at the site.The 1.1-kilometre system is designed to transport about 800,000tpa of alumina, providing a consistent supply of raw material for aluminium production.The infrastructure is designed with a 50-year operational life replacing current equipment dating back to the 1960s.Rio Tinto says the new system also delivers environmental benefits, with a sealed pipe design reducing particulate emissions by around 40% through improved material containment and fewer transfer points. The recovered alumina can be reintroduced into the production process, allowing for more efficient material handling.Rio Tinto BC Works general manager Simon Pascoe says the project strengthens a critical component of the smelter’s operations.“This project is a key milestone for Kitimat and a strong signal of our confidence in the future of our operations,” he said.Rio Tinto has operated in Kitimat for more than 70 years and continues to invest in its aluminium operations in British Columbia.